Aberdeen Standard’s UK residential assets top £700m

Aberdeen Standard Investments (ASI) said it invested more than £44 million in two strategic transactions that increase its total residential assets under management in the UK to more than £700 million across 12 funds.

Aberdeen Standard has acquired Lochrin Quay, a 113-unit residential block in Edinburgh.

The new-build property close to the city’s Exchange financial district offers a range of accommodation including studios and one, two and four bedroom apartments and is already 80% occupied.

The £27.5 million purchase is the second residential acquisition for a £2.3 billion multi-sector portfolio.

Separately, Aberdeen Standard’s UK PRS Opportunities 1 Fund has committed £17.25 million for the development of a new 107-unit residential scheme in Leeds.

The development will provide rental accommodation in the western end of the Leeds city centre. The developer, KMRE Group, will complete the scheme in spring 2019.

This investment will be the second asset for UK PRS Opportunities 1, which was launched in 2016 to focus on large investments in the private rented sector across the UK.

Ed Crockett, fund manager at Aberdeen Standard Investments, said: “These deals reinforce our long-standing commitment to the private rented sector in the UK, where we continue to target high quality housing stock in key cities.

“The UK market is currently worth more than £1 trillion and is set to grow with an anticipated 24% increase in private renting by 2022.

“With its secure long-term rental income streams, residential property is a compelling opportunity for investors. But product is key.

“Our experience in Europe, shows that what really counts is being able to create homes and communities that people want to live in for decades.”

Aberdeen Standard’s current UK residential portfolio includes more than 800 private rented units and nearly 6,000 student rooms.

This complements a substantial European portfolio of 9,000 properties with a total value of €6 billion.

The asset manager recently launched a pan-European Residential Property Fund with more than €350 million from investors.

Capita and Colliers International acted for Aberdeen Standard Investments on the deals; legal advisers were Pinsent Mason and Hogan Lovells.